Magic Corporation manufactures water toys. It plans to grow by producing high-quality water toys that are delivered in a timely manner. There are a number of other manufacturers who produce similar water toys. Magic believes that continuously improving its manufacturing processes and re-engineering processes to downsize and eliminate excess capacity are critical to implementing its strategy. Which of the following best describes Magic's strategy?

Question

Quizplus · Accepted Answer

Magic Corporation's strategy is best described as cost leadership. The company plans to grow by producing high-quality water toys that are delivered in a timely manner, and it believes that continuously improving its manufacturing processes and re-engineering processes to downsize and eliminate excess capacity are critical to implementing its strategy. This focus on cost reduction and efficiency is characteristic of a cost leadership strategy.

Magic Corporation Manufactures Water Toys